Reporter and farmer. [volume] (Webster, Day County, Dakota [S.D.]) 188?-1946, 1887-12-15
rnESEDEMi > mESSkuEs
-
President ClevelanG's Annual Essay
to Congress Happily and Unex-
peetedly Brief
No Topic Is Discussed Aside from the
Question Of the
Tariff.
A Reduction of the Treasury Surplus
Urged with All the Force of
Earnest Argument.
The Removal or Material I~essening
of the Duty on Wool Is Recon-
mended.
pREsrNrEp nY enovER.

OF the surplus trgentiy Urged
To the Congress of the United States: You
are confronted at the threshold of your lss-
isiative duties with a condition of the ma
tional finances which i'm eratiyely demands
immediate and careful consideration The
mount of money annually exacted. through
the operation OF present laws. from the in
dustries and necessities of the people largely
exceeds the sum necessary 10 meet the ex-
peuses OF the government When we con-
slider that the theory of our institutions
guarantee to every citizen the full enjoy
ment OF all the frlits of his industry aud en-
terprise, with only such deduction as may
be his share towards the careful and econcm-
ical maintenance of the government which
protects him it is plain that the exaction of
more than this is indefensible extortion and
q culpable betrayal of American fairness n
justice. This wrong inflicted upon those
who bear the burden of national taxation,
ike other wrong. mnliiplies a brood of evil
consequences The public treasury, which
should oniy exist as a conduit con-
veying the peoples tribute TO it's le~
climate objects o. expenditure, be-
comes a boarding place for money need
iessly withdrawn from trade and the pco-
pies use, thus Gripping our national ener-
gies. suspending our country's develop
ment, preventing investment in productive
enterprise, threatening financial disturb
ance and inviting schemes of public plumber.
This condition of our treasury is not alto
gether new; and il has more than once of
late been submitted 10 the peoples repre-
sensatiyes in the congress-, who alone can
apply a remeay. And vet the situation still
continues. with aggravated incidents, more
than ever p~resaging financial CONFUSION
and widespread disaster. IL viii not do 10
NarfaNt this cffrraT5nn hGaanSa ffS dAnuar1 ara
not now pslpably imminent and apparent
They exist none The less certainly, and await
the unforeseen and unexpected occasion,
when suddenly they will be precIpitRted
upon us On June so, 1855, the excess of
revenues over public expenditures after
complying with the nnual requirement of
the sinking fund set was S17.S59. 73a 81;
during the wear ended June 80. 1856. such
excess amounted 70 S49.4o5, 545 20; a
during the year ended June 80, 1857, it
reached 500, 567 $40 so The ennual con-
uibusions 10
SINKING FUND
during the three years above specified,
amounting in the aggregate TO $685.
e5s.320 "a. and deducted from the
surplus as stated, We're made by
calling in for that purpose OUT
standing ) per cent bonds OF the govern
ment During the six months prior 20 June
80. 1857, the surplus revenue had grown so
A1L@ - AIN . = " a.
feared the withdrawal Of this great sum of
money needed by the people would so affect
the business Of the country. that S79.S64,-
100 of such surplus WAS applied 10 the paw
meat of the principal and interest of the s
Der cent n stall outstanding. and which
were then PAYABLE at the option of the gov
srnmeu1 The nrecarious condition of
financial affairs among the people still need
ing relief, immediately after lime 80, 1857,
the remainder of the 8 per cent bonds then
interest TO Sls.S17. 800, was called in and
appliedt 70 the ~sinkinE-fnnd contribution for
the current fiscal year Notwithstanding
these operations of the treasury department.
representations of distress III business cir
cles not only continued but increased, and
absolute peril seemed at hand In these cir
cumstances the contribution to the sinking
fund for the current fiscal year was al once
completed by the expenditure of S27.6s4,-
2SS 90 IN the purchase of government bonds
not yet due bearing 4 and 4la per cent inter-
esf. the premium paid thereon averaging
about Pa per cent for the former and 3
per cent for the latter. In addition
20 this the interest accruing during
the current year upon the outstanding bond
ed Indebtedness of the government was TO
some extent anticipated. and banks selected
as repositories Of public money were per-
mitted 10 somewhat increase their deposits
While the expedients thus employed TO re-
lease TO the people the money lying idle in
the treasury served 70 avert immediate dan
ger, our surplus revenues ave continued to
accumulate, the excess for the present wear
amounting on Dec / TO S55.25S.7Ol. 10.
and estimated to reach Sis. 600. 900 on
June 80 next. At which date it is expected
that this sum, added to prior accommodations.
will swell the surplus in the treasury 10
$40, 600, 1000 There seems TO be no assur-
ance that with such 6 withdrawal from use
OF the peoples circulating medium, our
business community may not in the near fu-
ture be subjected 10 the same distress which
was quite lately produced from the same
CAUSE And while the functions of our ma
t,onsl treasury mould be few and simple
reached, 1 believe, by its entire dIsconnec-
ton with private business interests, vet.
when by a peryersion OF its purposes, It idly
holds
MONEY UsELEssLY s~uBTRACTED
from the channels OF trade, there seems to
be reason for the claim that some legitimate
means should be devised by the
gencv. without waste or extravaganza,
such money TO its place among the people.
II such an emergency apises there now ex-
lists nc clear and undoubted executive power
OF relief Heretofore the redemption of s
per cent boads, which were payable at the
option of the government, has afforded a
means tor this disbursement of the excess of
our revenues; but these bonds have all been
retired. and there are nc ponds outstanding
the payment of which we have the right 10
insist upon The contribution to the sinking
fund which furnishes The occasion for ex-
penditure in the purchase of bouds has
already been made for the current year, so
that there is no outlet in that direction In
the present Etate OF legislation the only pre-
tense of any existing legislative owe to
restore. at this time, any part of our surplus
revenues to the people ey its expenditure
consists in the snpposition thst the secretary
OF TIE treasury may enter the market and
purchase the bonds or the government not
yet due at a rate of premium 20 be agreed
upon. ihe emily provision OF law from which
such s power could be derived is found in an
appropriation bill passed a number of years
ago; and 1t Is subject to the suspicion
! that it was intended as temporary and
limited in its application, instead of con-
ferrihg o continued discretion and author
ity. No condition ought 10 exist which
would justify the grant of power to c single
official, anon his Judgment of its necessity,
to withhold from or release 70 the business
OF the people. in an unusual manner. money
held IN the treasury, and thus affect, at his
VII the financial situation of the country
and If il is deemed wise to lodge IN the Sec
Rotary OF the treasury the authority in the
present juncture TO purchase bonds, it
should be plainly vested AM provided as far
as possible with such checks and limitations
as viii define this officials right and discre-
ton. and at the same time relieve him from
Undue responsibility. In considering the
question OF purchasing bonds as a means of
restoring TO circulation the surplus money
accommodating in the treasury. IL should be
borne in mind that premiums must of course
be PAID upon such purchase. that there NAV
be a large partof these BOMBS held as invest
menfs which cannot be purchased at any
price, and that combinations among holders
who are willing 70 sell, may unreasonabiy
enhance the cost of such bonds to the gov
eminent II mas been suggested that
THE PRESENT BONDED DEBT
might be refnnded AZ a less rate OF interest
and the difference between the old and new
security paid in cash, thus finding use for
the surplus IN the treasury. tn success of
this plan. il Is apparent must depend upon
the yolition Of the holders of the present
bonds, and IL Is not entirely certain that the
inducement which must be offered them
would result in more financial benefit TO the
government than the purchase of bonds.
while the latter proposition would reduce
the principal of the debt by actual payment
instead of extending it The proposition TO
deposit the money held oy the government
in banks throughout the cuntry for use BY
the people IS. il seems 10 me, exceedingly
objectionable in principle. as establishing
too close \ relationship between tho opera
tons OF the government treasury and the
business OF the country, and too extensive a
commingiiag Of their money, thus fostering
an NDnaturai reliance In private business
upon publsc funds II this scheme should
be adopted il should only be done as \ tenn
rorsry expedient to meet an urgent neess-
sity. Legislative and executive effort should
generally be in the opposite direction and
should have q tendency TO divorce, as much
and as last as can safely be done, the treas
cry department from private enterprise.
Or course Il Is not expected hat unnecessary
and ~exrrayagent appropriations viii be made
for the purpose of avoiding the accumulation
OF an excess OF revenue. such expenditure.
beside vhe decentralization OF ali lust con-
ceptsons of pubic duty which il entails.
stimulates 3 habit Of reckless m~providence